$OGI What Uplisting to the NASDAQ Means

At the end of April, OrganiGram Holdings (TSXV:OGI) (NASDAQ:OGI) filed all the necessary paperwork with the NASDAQ in hopes of uplisting to the major exchange. Three weeks later, on May 21, OrganiGram stock began trading here under the ticker OGI.

Historically, uplisting from the OTC to a major US exchange leads to a notable jump in the company’s share price. Of course, any short-term gains are nice, but they are incomparable to the long-term potential that uplisting offers OrganiGram stock.

OrganiGram Stock Declines

However, OrganiGram stock has somewhat broken the more traditional mold; shares have been declining since uplisting to the exchange.

OGI stock hit a peak of $8.35 the day before uplisting, but at $7.24 at present, shares have fallen almost 14% since.

Investors shouldn’t worry, though. This current downturn still doesn’t shake the longterm potential that OrganiGram is now afforded by listing on the NASDAQ.

The Benefits of Major Exchanges

Major exchanges offer cannabis shares a legitimacy that is needed in this newly legalized industry. Further, it brings major improvements to the stock’s visibility, liquidity, and validity.

The biggest benefit of all is arguably the Wall Street coverage that comes with listing on a major exchange. This can lead to investment from major institutional investors that more-often-than-not won’t buy OTC-listed companies.

All in all, the list of added benefits goes a long way to lifting a marijuana stock’s valuation. Will this be the same for OrganiGram stock?

OrganiGram Holdings is Efficient

As one of the most efficient cannabis growers in Canada, OrganiGram is a smart play for several reasons. It is on track to produce 113,000 kilos across its 490,000 square foot Moncton facility. Its yield per square foot is twice that of the industry average: 231 grams per square foot. It does this by growing upwards—utilizing all space possible by employing three tiers of growing space.

Growing in this efficient manner maximizes cultivation space but minimizes growing costs and boosts margins.

Along with lower costs of growing, the company also has supply agreements in place with all of Canada’s provinces.

Will uplisting boost OrganiGram stock in time? What do you think? Are you an investor of these shares?